Abstract

In March 2016, eBay Motors, in partnership with WeGoLook, launched an inspection service for all eBay car auction listings. This service allows potential buyers to obtain an inspection report, primarily focused on verifying the vehicle's non-mechanical condition. Our findings indicate that this service, by reducing information asymmetry, increases buyers' willingness to pay. Furthermore, the impact of the service follows an inverted U-shaped relationship with the level of uncertainty, suggesting that the effect is strongest at moderate levels of uncertainty. These findings and the underlying mechanism highlight a novel approach for customer information acquisition.

If you wish to attend, please email dip.mkt@unibocconi.it